Wage Levels and Employment — On Economic Policy Advice Using the Multi-Country Model NiGEM
Abstract The restrictions of the NiGEM initial model and their relevance over the last decade and a half have produced oft-cited economic policy advice that can hardly be justified empirically: Wage increases will result in significant employment losses. But with statistically validated modification...
Saved in:
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | deu |
| Published: |
Sciendo
2020-10-01
|
| Series: | Wirtschaftsdienst |
| Online Access: | https://doi.org/10.1007/s10273-020-2767-3 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Summary: | Abstract The restrictions of the NiGEM initial model and their relevance over the last decade and a half have produced oft-cited economic policy advice that can hardly be justified empirically: Wage increases will result in significant employment losses. But with statistically validated modifications, the results and the economic policy statements of the simulations by the German Council of Economic Experts and the Deutsche Bundesbank find that a higher wage path now stimulates domestic demand more strongly because the set employment losses do not materialise. There are no noticeable losses in growth and employment for the German economy. |
|---|---|
| ISSN: | 0043-6275 1613-978X |